KUALA LUMPUR: RAM Ratings has reaffirmed Hong Leong Islamic Bank Berhad's (Hong Leong Islamic or the Bank) long- and short-term financial institution ratings at a respective AA1 and P1; the long-term rating has a stable outlook.
The rating agency said Hong Leong Islamic's financial institution ratings mirror those of its parent, Hong Leong Bank Berhad (Hong Leong Bank). The bank is effectively a carve-out of its parent's Islamic banking operations, it said.
"Hong Leong Islamic is highly integrated with its parent, and benefits from leveraging on the latter's systems, infrastructure and branch network. Hong Leong Bank is expected to readily provide financial support to Hong Leong Islamic, should the need arise," it said in a statement Thursday, Jan 27.
RAM Ratings said Hong Leong Bank was an established player with a strong franchise in the domestic consumer-banking arena.
Likewise, Hong Leong Islamic's financing portfolio is focused on the consumer segment, particularly in the financing of residential PROPERTIES [] and automobiles, it said. It said the bank's asset quality had remained superior to its peers', and''its gross impaired-financing ratio stood at 0.9% as at end-September 2010. In FYE 30 June 2010, Hong Leong Islamic's pre-tax profit increased 11.4% year-on-year to RM111.4 million, backed by higher financing income and a write-back in general allowances, it said. The bank's capitalisation levels also remained robust, as reflected by its respective overall risk-weighted capital-adequacy ratio of 20.4% as at end-September 2010, it said. "Meanwhile, Hong Leong Bank has made an offer to acquire the assets and liabilities of EON Capital Berhad, at an aggregate purchase price of approximately RM5.1 billion cash (the Proposed Acquisition); the deadline for the Proposed Acquisition has been extended to 30 April 2011. "RAM Ratings is closely monitoring the developments pertaining to the Proposed Acquisition, and its impact on the credit fundamentals of both Hong Leong Bank and Hong Leong Islamic," it said.
The rating agency said Hong Leong Islamic's financial institution ratings mirror those of its parent, Hong Leong Bank Berhad (Hong Leong Bank). The bank is effectively a carve-out of its parent's Islamic banking operations, it said.
"Hong Leong Islamic is highly integrated with its parent, and benefits from leveraging on the latter's systems, infrastructure and branch network. Hong Leong Bank is expected to readily provide financial support to Hong Leong Islamic, should the need arise," it said in a statement Thursday, Jan 27.
RAM Ratings said Hong Leong Bank was an established player with a strong franchise in the domestic consumer-banking arena.
Likewise, Hong Leong Islamic's financing portfolio is focused on the consumer segment, particularly in the financing of residential PROPERTIES [] and automobiles, it said. It said the bank's asset quality had remained superior to its peers', and''its gross impaired-financing ratio stood at 0.9% as at end-September 2010. In FYE 30 June 2010, Hong Leong Islamic's pre-tax profit increased 11.4% year-on-year to RM111.4 million, backed by higher financing income and a write-back in general allowances, it said. The bank's capitalisation levels also remained robust, as reflected by its respective overall risk-weighted capital-adequacy ratio of 20.4% as at end-September 2010, it said. "Meanwhile, Hong Leong Bank has made an offer to acquire the assets and liabilities of EON Capital Berhad, at an aggregate purchase price of approximately RM5.1 billion cash (the Proposed Acquisition); the deadline for the Proposed Acquisition has been extended to 30 April 2011. "RAM Ratings is closely monitoring the developments pertaining to the Proposed Acquisition, and its impact on the credit fundamentals of both Hong Leong Bank and Hong Leong Islamic," it said.
No comments:
Post a Comment